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Can't log on to windows at all. Don't know what to do.

Ok so my computer is stuck on a loop and messed up (I'm on a diffrent computer right now). So what happens is every time I try to boot up the computer instead of picking a user I get this error pop up "This copy of Windows must be activated with Microsoft before you can log on. Do you want to activate Windows now" "Yes" and "No" are clickable Heres what happens from there...

When I click:
"No" It just shows me my background for a few seconds and takes me back to the begging...

When I click:
"Yes" Cmd comes up with an error on a seperate pop up from cmd
"C:\Windows\system32\msoobe.exe
The NTVDM CPU has encountered an illegal instruction.
CS:0dec IP:0103 OP:ff ec e6 dd ff Choose 'Close' to terminate the application"
If i choose close It takes me right back to the begging... If I Choose 'Ignore' It just changes the 'IP:0103' to something a little bit diffrent. If I keep pressing ignore it will eventually take me right back to the begging...

This is a 100% legit copy of windows and I have not encountered this problem before. I can run the computer in safe mode but I can't see the start bar. But I can open things via ALT + CTRL + DELETE > File > Run > Browse...

Remember that XP is over 10 years old and can become corrupted at times, so we all reinstall or Repair Install -This is just from the quick post that you have left, but there may be other options put up by others -

Called microsoft support which was pointless. He just tried to get me to do a system restore which I tried and for some reason once I pik the date to restore to and click next nothing happens. He also tried to help me edit some registry which was missing from the computer. He basically just told me my only option is to upgrade to windows 7 if I can't find the dumb CD with my windows xp code. Can anyone think of something this guy didn't?